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Mexico’s new tax that is value-added electronic treatments

Mexico have formally joined up with the list that is growing of imposing some form of digital taxation. Mexico’s Congress of this Union passed away an modification towards the Value-Added taxation Law that will enable for your taxation of on-line purchases built to users located in Mexico, no matter whether the distributor includes a physical existence in-country. The brand-new procedures will grab influence on 1 Summer 2020.

VATL modification assessment

Mexico’s Value-Added taxation legislation (VATL) modification calls when it comes to number of value-added income tax (VAT) at a common price of 16 per cent on some electronic service made by international vendors to visitors situated in Mexico. No taxable presence in Mexico is needed in order for suppliers to fall under the digital services tax.

The VATL supply will not differentiate between business-to-business (B2B) and business-to-consumer (B2C) purchases. All suppliers are subject to the new legislation, assuming their services are taxable and fit the VATL’s definition of digital services as a result.

Statutory types of electronic service include downloading and/or accessing graphics, films, songs, book, facts, movie, video gaming (like betting), ring tones, visualization of on-line reports (although not e-books or electric models of magazines), site visitors, environment, using the internet bars, adult dating websites as well as other media material, distance education, tests and training. Some real life instance of these service consist of Netflix, Tinder therefore the learning that is online Coursera. Continue reading